Sebi, in its 85-page order, said that RIL’s promoters and PACs (Milli Bhagat) failed to disclose the acquisition of more than 5 per cent in the company in 2000. Mukesh and Anil separated in 2005 by splitting the business.
The Securities and Regulatory Board of India (SEBI) on Wednesday imposed a fine of Rs 25 crore on the existing and former promoters of Reliance Industries. This fine has been imposed for not complying with the acquisition rules in the case related to Reliance Industries in the year 2000.
Apart from industrialists Mukesh Ambani and his brother Anil Ambani, Sebi has fined Nita Ambani, Tina Ambani, KD Ambani and other family members. In January 2000, Reliance Industries issued equity shares worth Rs 12 crore to 38 units. This allotment was made on the basis of the warrant received in lieu of the NCD issued in the year 1994.
Sebi, in its 85-page order, said that RIL’s promoters and PACs (Milli Bhagat) failed to disclose the acquisition of more than 5 per cent in the company in 2000. Mukesh and Anil separated in 2005 by splitting the business.
The regulator found that the respective 6.83 per cent stake was bought by the promoters of Reliance Industries in the year 2000. For this, it was acquired unanimously from all individuals. This violated the maximum acquisition limit of 5 per cent.
In fact, as per the rules, if the promoter increases his stake in the company by more than five per cent in a financial year, it has to make an open offer to the minority shareholders, which Reliance did not bring. In this matter of order, he was required to publicly declare the share acquisition on January 7, 2000. On the same date, RIL’s equity shares were allotted to PAC on the basis of warrant issued in 1994.
